How to use moving averages in trading?
Moving averages help identify trends and potential entry or exit points. The most commonly used are:
📌 MA (Moving Average): Averages the prices over a specific period, useful for seeing the overall trend.
📌 EMA (Exponential Moving Average): Gives more weight to recent prices, reacting faster to changes.
📊 Key intervals:
✅ MA (7, 25, 99) – To identify trends in different time frames.
✅ EMA (7, 25, 99) – For a faster response to price changes.
📈 How to interpret them:
✔️ When the price is above the averages, it may indicate an uptrend.
✔️ When it is below, it may indicate a downtrend.
✔️ Crossings between averages can signal trend changes (example: golden cross and death cross).
💬 Do you use moving averages in your strategy? How do you set them up?